Wealthier Kenyans are selling their large homes in Nairobi’s Karen and searching for smaller, quieter spaces as their children leave home.
According to real estate experts, the elderly are currently seeking cosier living quarters with less upkeep. These homeowners are often relocating to places like Maanzoni in Machakos, Champagne Ridge in Kajiado, and Tigoni in Kiambu. Some are also considering Nanyuki, Naivasha, or the North Coast in Kilifi, Watamu, and Lamu. Buyers known to purchase these types of properties include wealthy clientele, Kenyans residing abroad, as well as officials within the government.
According to Tarquin Gross, head of the residential agency at Knight Frank, many of the buyers are former tenants in the area who now have the means to buy. In the past six months, the majority of transactions have occurred in Karen, New Muthaiga, Gigiri, old Muthaiga, and Rosslyn. Wealthy individuals have continued to purchase and rent properties in posh estates in Kenya despite the tough economic climate that has affected the spending power of many Kenyans. Tarquin notes that many buyers including Kenyans in the diaspora are interested in passive income.
According to real estate agents, Investing in the Karen area is a wise decision for those wanting to generate a passive income, with the current average occupancy rate standing at 90%. Despite the sale and renting of top-end properties took a hit during the pandemic, demand for second homes has picked up steam in the aftermath. The most expensive addresses in Nairobi’s Karen estate are now Miotoni Road and Windy Ridge.
According to Maggie Macharia of Pam Goldings, a real estate agent in Nairobi, the most sought-after rental areas in Nairobi are Lane, Bogani Road, Ndege Road, and Hardy. Ms Macharia adds that most of the renters in Muthaiga and Gigiri are expatriates as the United Nations offices and foreign embassies are situated in that part of the city. Macharia believes that renting to the wealthy has its advantages as they tend to rent for longer periods, unlike middle or low-income neighbourhoods where tenants tend to move out every three months, causing a headache for landlords who have to search for new tenants frequently. Karen and Muthaiga are some of the areas where people prefer to rent for the long term.
